Application Transformation Market Size

Application Transformation Market Size

The global application transformation market size was valued at USD 14.8 billion in 2023 and is projected to grow at a CAGR of 13.8% between 2024 and 2032. Digital transformation initiatives are driving growth in the market as organizations recognize the need to adapt to evolving technology.

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These initiatives aim to leverage technology for enhancing business processes, improving customer experiences, and driving innovation. Companies striving for agility and market responsiveness often find their existing applications hindering progress due to outdated functionalities and limitations. This realization leads organizations to invest in application transformation services, enabling them to modernize legacy systems, integrate new technologies, and adopt cloud solutions.

For instance, in September 2024, Cognizant partnered with KOMBIT, a municipally owned IT firm in Denmark, to transform the testing and quality assurance of public service applications. This collaboration aims to enhance operational efficiency and improve user experience across 26 public service applications utilized by 98 Danish municipalities.

Legacy system challenges are also driving demand for the industry as organizations face limitations from outdated technology. These systems, built on older architectures, often lead to inefficiencies, high maintenance costs, and compatibility issues with modern solutions. As businesses aim for agility and innovation, legacy systems hinder their ability to respond quickly to market changes or customer demands. Outdated software may not support new features or integrations, making it difficult for companies to use advanced data analytics or cloud-based solutions. This creates a need for application transformation services, which help organizations modernize their legacy systems through refactoring, replatforming, or replacing them with more agile, cloud-native applications.